Milk bottles

The two largest European dairy cooperatives, DMK Group (Germany) and Arla Foods (Denmark), plan to merge their operations.

 

This would create a mega-cooperative with 12,000 member farms and pro forma sales of €19 billion. The new company would be based in Viby (DK) and would operate under the name Arla. The shareholder meetings still have to approve the merger in June, and the European antitrust authorities are also likely to scrutinise a merger of this size.

 

Peder Tuborgh (Arla Foods) will remain CEO and Ingo Müller (DMK) will lead the post-merger integration as deputy CEO.

 

Author: Dr Frank Mörsberger, AGROLAB GROUP